Homeowners looking to introduce energy efficiency measures into their homes will soon be able to take advantage of new green finance products.

The Government has launched a fund to boost the choice of affordable products for homeowners to help them reduce energy consumption.

Ministers are keen to scale up the green finance market and provide households with more choice of affordable finance options to retrofit their homes, helping them spend less on energy. It is part of wider efforts towards ensuring as many homes as possible to EPC band C by 2035 as possible.

Minister for Business, Energy and Corporate Responsibility, Lord Callanan, said: “Driving up the energy efficiency of homes won’t only reduce our impact on the climate, but will also help houses stay warmer for longer.

Green Home Finance Accelerator

“Green finance products will allow households with greater means to spread costs over time, empowering them to be able to invest in their properties, improving their energy efficiency and resale value.”

Up to £20 million is being made available for lenders and other organisations, through the Green Home Finance Accelerator, to develop new lending products which provide upfront and affordable capital to those who can afford it, to help make their homes more comfortable, cheaper to run and with lower carbon footprints.

The funding will be used to support lenders and other providers to develop, test, and pilot new and innovative green finance products that can help a wide range of homeowners overcome the upfront costs of larger retrofit. It also seeks to boost knowledge and understanding about green finance and how energy efficiency can make homes cheaper to run.

It follows the launch of the new Energy Price Guarantee, which has capped the bill for a typical UK household to an average of around £2,500 a year until April next year. It also comes in addition to the £400 energy bills discount for all UK households.

Upgrades for heating

Twenty per cent of emissions come from buildings and nearly two-thirds of owner-occupied homes are below EPC C rating, meaning their energy bills could be hundreds of pounds more than homes with a higher EPC rating.

The average EPC rating of owner-occupied homes is D. Owners of these properties can help push their homes to EPC C through various measures, depending on the property. This can often be by fitting small things like LED bulbs or heating controls. On other properties it might mean installing cavity wall and loft insulation and possibly insulating draughty floors, which together would cost on average £6,500. But these could save households over £300 a year on their energy bills.

“This funding will give more companies in the financial sector the opportunity to create and offer these products, and in so doing help households reap the benefits both in the investment to their properties, and in the savings they can make on their energy bills.

The announcement is the latest in a raft of measures designed to help improve the energy efficiency of the country’s housing stock.

The Government’s £12 billion Help to Heat schemes includes the £450 million Boiler Upgrade Scheme, which opened to voucher applications in May 2022. This is already incentivising people to move towards low carbon heating, offering grants of £5,000 towards the upfront cost of the installation of an air source heat pump, and £6,000 for a ground source heat pump.

The government is providing £4 billion between 2022 and 2026 to improve the energy efficiency of buildings, with 450,000 low-income households having their homes retrofitted with the likes of wall and loft insulation, solar panels and modern heating controls.

As families struggle to manage household finances with the cost-of-living crisis, parents are being reminded that there is cash available to help towards childcare costs.

Up to £2,000 a year is available to help pay for half-term holiday clubs and wraparound care during school terms.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Tax-Free Childcare can make a big difference to families, helping with the bills for things like holiday clubs, nurseries, childminders and after school clubs. It’s easy to register – search ‘Tax-Free Childcare’ on GOV.UK.”

Money in your pocket

More than 391,000 families saved money on their childcare costs in June this year, worth a total of £41.6 million in top-up payments, and HMRC is urging thousands of other families to not miss the chance to save up to £500 every three months, or £1,000 if their child is disabled.

Families can sign up to Tax-Free Childcare to help pay for holiday schemes, before and after-school clubs, childminders and nurseries, and other approved childcare schemes. It is available to families with children up to the age of 11, or 17 if their child has a disability.

The Government will pay 20 per cent of childcare costs by topping up the money paid into a Tax-Free Childcare account. This means for every £8 paid into the online account, families will automatically receive an additional £2 in government top-up.

For thousands of families who use Tax-Free Childcare, the money they save each month on their childcare costs is money that goes back into their pockets. Accounts can be opened at any time of the year and can be used straight away. Money can be deposited at any time and used when needed. Any unused money that is deposited can be simply withdrawn at any time.

Find out more

More than one million families in the UK are entitled to some form of government childcare support and the Government is encouraging those eligible to not miss out on their entitlements.

Families can find out more about Tax-Free Childcare via the Childcare Choices website.

Tens of thousands of pounds is sitting in bank accounts unclaimed by teenagers who may not even know it exists.

The cash is from matured Child Trust Funds savings, a scheme set up for every child born between 1 September 2002 and 2 January 2011.

To encourage future saving and start the account, the Government provided an initial deposit of at least £250.

The savings accounts mature when the child turns 18 years old. Eligible teenagers, who are aged 18 or over and have yet to access their Child Trust Fund account, could have savings waiting for them worth an average of £2,100.

Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive, said: “Teenagers could have a pot of money waiting for them worth thousands of pounds and not even realise it. We want to help you access your savings and the money you’re entitled to.”

If teenagers or their parents and guardians already know who their Child Trust Fund provider is, they can contact them directly. This might be a bank, building society or other savings provider.

Alternatively, they can visit GOV.UK and complete an online form to find out where their Child Trust Fund is held.

Many eligible teenagers who have yet to claim their savings might be starting university, apprenticeships or their first job. The lump-sum amount could offer a financial boost at a time when they need it most.

An estimated 6.3 million Child Trust Fund accounts were set up throughout the duration of the scheme, containing about £9 billion. If a parent or guardian was not able to set up an account for their child, HMRC opened a savings account on the child’s behalf.

Teenagers aged 16 or over can take control of their own Child Trust Fund if they wish, although the funds can only be withdrawn once they turn 18 years old.

Where children have a Child Trust Fund, families can still pay in up to £9,000 a year tax-free. The account matures once the child turns 18 years old and no further money can be deposited. They can either withdraw the funds from the matured Child Trust Fund account or reinvest it into another savings account.

Until the child withdraws or transfers the money, it stays in an account that no-one else has access to.

The Child Trust Fund scheme closed in January 2011 and was replaced with Junior Individual Savings Accounts (ISA).

To find out more search ‘Child Trust Fund’ on GOV.UK.

Beware of fraudsters if you are starting to think about completing your annual tax returns.

Self-Assessment customers have become a target for unscrupulous criminals, with some threatening arrest and others promising a sizeable rebate.

In the 12 months to August 2022, HM Revenue and Customs (HMRC) responded to more than 180,000 referrals of suspicious contact from the public, of which almost 81,000 were scams offering fake tax rebates.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Never let yourself be rushed. If someone contacts you saying they’re from HMRC, wanting you to urgently transfer money or give personal information, be on your guard.

“HMRC will never ring up threatening arrest. Only criminals do that.”

Scammers have targeted individuals by email, text and phone with their communications ranging from offering bogus tax rebates to threatening arrest for tax evasion.

Fraudsters target customers when they know they are more likely to be in contact with HMRC, which is why Self-Assessment customers should be extra vigilant to this activity.

There is a risk they could be taken in by scam texts, emails or calls either offering a ‘refund’ or demanding unpaid tax, thinking that they are genuine HMRC communications referring to their Self-Assessment return.

Some customers who have not done a Self-Assessment return previously might be tricked into clicking on links in these emails or texts and revealing personal or financial information to criminals.

The deadline for filing paper tax returns for the 2021 to 2022 tax year is 31 October 2022, and 31 January 2023 for those filing their tax return online. Customers who file their return online via GOV.UK should not share their HMRC login details. Someone using the details could steal from the customer or make a fraudulent claim in their name.

HMRC is actively tackling the scams and fraudsters who attempt to mimic genuine HMRC activity and messages. The department’s dedicated Customer Protection Team works continuously to identify and close down scams.

HMRC also tackles misleading websites designed to make people pay for services that should be free or low cost, charging to connect people to free HMRC phone helplines. To protect the public, HMRC formally disputes and takes ownership of HMRC-branded internet domain or website names. Since 2017, the department has recovered more than 183 websites hosting low-value services such as call-connection sites, saving the public millions of pounds.

Anyone contacted by someone claiming to be from HMRC in a way that arouses suspicion is advised to take their time and check the scams advice on GOV.UK.

Customers can report any suspicious activity to HMRC. They can forward suspicious texts claiming to be from HMRC to 60599 and emails to phishing@hmrc.gov.uk. Any tax scam phone calls can be reported to HMRC using the online form on GOV.UK.

Around 40,000 businesses are now exempt from reporting requirements as the Prime Minister unveils a new plan to boost productivity.

Liz Truss has announced that thousands of the UK’s fastest-growing businesses will be released from existing requirements and other regulations.

Currently, small businesses are presumed to be exempt from certain regulations. However, many medium-sized businesses – those with between 50 and 249 employees – still report that they are spending more than 22 staff days per month on average dealing with regulation. Over half of all businesses consider regulation to be a burden to their operation.

The Prime Minister has announced plans to widen these exemptions to businesses with fewer than 500 employees for future and reviewed regulations, meaning an additional 40,000 businesses will be freed from future bureaucracy and the accompanying paperwork that is expensive and burdensome for all but the largest firms.

The exemption will be applied in a proportionate way to ensure workers’ rights and other standards will be protected, while at the same time reducing the burden for growing businesses.

Regulatory exemptions are often granted for SMEs, which the EU defines as below 250 employees. However, The UK is free to take its own approach and exempt more businesses to those with under 500 employees. The Government can also apply this to retained EU law currently under review, which would not have been possible as part of the EU.

The changed threshold came into force last week for all new regulations under development as well as those under current and future review, including retained EU laws. The Government will also look at plans to consult in the future on potentially extending the threshold to businesses with 1,000 employees once the impact of the current extension is known.

This is the first step in a package of reforms to ensure UK business regulation works for the UK economy. The reforms will harness the freedoms the UK has since leaving the EU to remove bureaucratic regulations on businesses, while streamlining and making it easier for them to comply with existing rules, ultimately saving them valuable time and money.

Time is fast running out for VAT-registered businesses to be ready for Making Tax Digital filing.

From the start of next month, organisations will no longer be able to submit VAT returns through their existing online account.

By law, all VAT-registered businesses must sign up to Making Tax Digital (MTD) and use compatible software to keep their VAT records and file their returns.

Richard Fuller MP, Economic Secretary to the Treasury, said: “Making Tax Digital can help businesses get their tax right first time, which cuts the administration burden and frees up time for them to get on with what matters most to them – growing their business.

“I encourage any VAT-registered businesses still to register for Making Tax Digital to get online and sign up.”

MTD’s aim is to help businesses reduce errors in their returns, making it easier for them to manage their tax affairs, and consequently helping them to grow.

More than 1.8 million businesses are already benefitting from the service, and more than 19 million returns have been successfully submitted through MTD-compatible software so far.

In less than one month, businesses who file their VAT returns on a quarterly and monthly basis will no longer be able to submit them using their existing VAT online account, unless HMRC has agreed they are exempt from MTD.

If businesses do not file their VAT returns through MTD-compatible software, they may have to pay a penalty. Even if a business currently keeps digital records, they must check their software is MTD compatible and sign up for MTD before filing their next return.

If a business has not already signed up to MTD or started using compatible software, they must follow these steps now:

1. choose MTD-compatible software – a list of software, including free and low-cost options, can be found on GOV.UK.
2. check the permissions in the software – once a business has allowed it to work with MTD, they can file VAT returns easily. Go to GOV.UK to learn how to do this and search ‘manage permissions for tax software’.
3. keep digital records for current and future VAT returns – a business can find out what records need to be kept on GOV.UK.
4. sign up for MTD and file future VAT returns using MTD-compatible software – to find out how to do this, go to GOV.UK and search ‘record VAT’.

If a business is already exempt from filing VAT returns online, or if their business is subject to an insolvency procedure, they will automatically be exempt.

If a business is new and is not yet registered for VAT, they will automatically be signed up for MTD while registering for VAT through HMRC’s new VAT Registration Service (VRS).

A range of accessible help is available online through GOV.UK, webinars and videos as well as through HMRC’s Extra Support Service. Thousands of people have also benefitted from HMRC’s live webinars, which offer support on filing digitally and explain how it can help businesses. HMRC is continuing to communicate directly with businesses and agents to support them as they transition to MTD for VAT.

Are you unsure what to do? Get in touch for our help.

Anyone planning to complete a tax return for 2021-22 must notify HM Revenue and Customs (HMRC) by Wednesday.

Before customers can complete their first tax return, they need to register with HMRC to receive their Unique Taxpayer Reference (UTR) which they need to file a return.

The tax return deadline for the 2021 to 2022 tax year is 31 October 2022 for those completed on paper forms, and 31 January 2023 for online returns.

HMRC is encouraging customers to plan ahead to give themselves the best chance to complete their Self Assessment on time. Customers who file early will benefit from knowing what they owe, allowing them to budget and pay at a time that suits them. If customers are due a refund, they could get it back quicker. Customers have until 31 January to pay any tax owed.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “By registering early, Self Assessment customers will have plenty of time to prepare and access all the help available to them before they start their first tax return.

“Help and support is available to anyone completing a return, just search ‘Self Assessment’ on GOV.UK.”

Customers can check if they need to complete a tax return by using the free online tool on GOV.UK. Customers who are new to Self Assessment for the 2021 to 2022 tax year may include:

• those who are newly self-employed and earned more than £1,000
• a new partner in a business partnership
• those who have received any untaxed income
• those claiming Child Benefit if they or their partner have an income above £50,000
• Self-employed customers must also register for Class 2 National Insurance contributions.

The easiest way to complete a tax return is online. Once a customer is registered for Self Assessment, they can use their UTR to access their tax return, as well as details of their income or earnings and other financial records. Detailed information on what documents are needed for Self Assessment are on GOV.UK.

For customers who have already filed their tax return but still need to pay any tax owed, they can visit GOV.UK to find out more about the payment options. Customers can now make Self Assessment payments quickly and securely through the free HMRC app.

If anyone is worried about paying their tax bill, support is available on GOV.UK, for example if customers are unable to pay in full, they may be able to set up a monthly payment plan online if the tax owed is less than £30,000.

All Self Assessment customers need to be alert to the risk of criminals emailing, calling or texting claiming to be from HMRC. Scams come in many forms – some threaten immediate arrest for tax evasion, others offer a tax rebate. Contacts like these should set alarm bells ringing and HMRC advises customers to take their time and check scams advice by searching for ‘HMRC scams’ on GOV.UK.

HMRC also urges customers never to share their HMRC login details. Someone using them could steal from the customer or make a fraudulent claim in their name.

If you need any advice, get in touch to arrange an appointment.

1 October 2022 – Due date for Corporation Tax due for the year ended 31 December 2021.

19 October 2022 – PAYE and NIC deductions due for month ended 5 October 2022. (If you pay your tax electronically the due date is 22 October 2022.)

19 October 2022 – Filing deadline for the CIS300 monthly return for the month ended 5 October 2022.

19 October 2022 – CIS tax deducted for the month ended 5 October 2022 is payable by today.

31 October 2022 – Latest date you can file a paper version of your 2021-22 self-assessment tax return.

1 November 2022 – Due date for Corporation Tax due for the year ended 31 January 2022.

19 November 2022 – PAYE and NIC deductions due for month ended 5 November 2022. (If you pay your tax electronically the due date is 22 November 2022.)

19 November 2022 – Filing deadline for the CIS300 monthly return for the month ended 5 November 2022.

19 November 2022 – CIS tax deducted for the month ended 5 November 2022 is payable by today.

Make sure your payment will reach HMRC’s bank account by the payment deadline. You may have to pay a surcharge if you do not pay on time. If you are not sure of the actual payment deadline you can use the VAT payment deadline calculator to work out how much time to allow.

To make payments on the same or next day

• online or telephone banking (Faster Payments)
• through your online bank account
• CHAPS

To make payments within three working days

• Direct Debit
• Bacs
• standing order (only for businesses using the Annual Accounting Scheme or Payments on Account)
• online by debit or corporate credit card
• at your bank or building society

If the deadline falls on a weekend or bank holiday, your payment must arrive in HMRC’s bank account on the last working day before (unless you pay by Faster Payments).

Although finance costs, predominantly loan interest, are now disallowed as an expense that can be utilised to reduce taxable rental income, these charges do qualify for a tax credit limited to 20% basic rate Income Tax. For example, if your loan/mortgage interest amounts to £10,000 this cannot be used to reduce your rental income. It will simply reduce your Income Tax bill by £2,000 (£10,000 x 20%).

However, there are three hoops that these claims need to jump through. The tax deduction is worked out as the lower of:

• 20% of any finance costs – costs not deducted from rental income in the tax year plus any unrelieved finance costs brought forward, in the above example £2,000;
• 20% of property business profits – the profits of the property business in the tax year (after using any brought forward losses); and
• 20% of adjusted total income – the income (after losses and reliefs and excluding savings and dividends income) that exceeds your personal allowance.

It is the final condition that can catch taxpayers out and deny relief. For example, if the majority of earnings are dividend income, and other earnings in total are lower than the annual personal tax allowance, currently £12,570, then no relief for finance charges can be claimed.

This could impact director shareholders of smaller companies with personal property income and finance costs, who many have adopted the high-dividend low-salary approach to taking remuneration from their company

This is a further justification for ongoing tax planning to ensure that all options are considered and reviewed to minimise overall tax payments.